Synopsis:
Shares gained modestly after the board cleared two projects worth ₹706 crore for VOIP systems and disaster preparedness. Despite steady revenue, profit slipped slightly, while rising capex, strong project pipeline, and expanding consultancy orders highlight continued growth momentum.
The shares of the power transmission company gained up to 1.3 percent in today’s trading session after the company’s board approved two new projects worth Rs 705.5 crore.
With a market capitalization of Rs 2,61,532.98 crore, the shares of Power Grid Corporation of India Ltd were trading at Rs 281.20 per share, increasing around 0.12 percent as compared to the previous closing price of Rs 282.10 apiece.
Project approval
According to the company filing, Power Grid Corporation of India Ltd’s board has approved two new projects worth Rs 705.5 crore. Under the first project, worth Rs 209.68 crore, the company will implement a VOIP Communication System for Grid Operation for all five regions. Under the second project, worth Rs 495.83 crore, it will implement Disaster Preparedness of Transmission Infrastructure: Procurement of 20 sets (300 towers) of Emergency Restoration System (ERS) under the Make in India initiative.
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Financial & Operational Highlights
The company posted a modest 2 percent revenue increase, rising to Rs 11,196 crore in Q1FY26 from Rs 11,006 crore a year earlier. However, net profit slipped 2.4 percent to Rs 3,631 crore, suggesting pressure on margins despite stable sales growth, pointing to potential cost or efficiency challenges.
PowerGrid’s execution pipeline is robust, with total works in hand worth Rs 1,48,644 crore. Major allocations include TBCB projects at Rs 99,906 crore, new RTM at Rs 37,049 crore, ongoing RTM at Rs 9,062 crore, and other projects at Rs 2,627 crore, underscoring a strong multi-year project pipeline fueling future growth.
PowerGrid’s Q1 FY26 consultancy income jumped to ₹329 crore from ₹121 crore last year, boosted by new smart meter business. There were 11 new domestic orders and 2 international ones, with 70 domestic and 17 international ongoing projects. The company pursues strategic growth in South Asia, Africa, Americas, and Australia.
PowerGrid’s Q1 FY26 capex surged to Rs 6,981 crore from Rs 4,615 crore in Q1 FY25, reflecting a robust rise in infrastructure investment. Commissioning achievements also improved, reaching Rs 2,806 crore by July FY26 compared to Rs 2,429 crore last year, highlighting accelerated project execution and capacity addition in the company’s expansion drive.
Written by Abhishek Singh
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